PaulDEGrauweof the University of Leuvensays that ifBritaincouldn't roll over its debtatacceptableinterest rates, itcouldultimatelyforce the Bank of England to buyit.
"The political consequences of austerity have been borne by the Monti government, while the European institutions that have enforced it go free, " Mr. DeGrauwe said.
By pooling risk, Eurobonds could be a more durable counter to such destabilising liquidity crises, argues Paul DeGrauwe, an economist at the Catholic University of Leuven, in Belgium.
The poor showing of Prime Minister Mario Monti in the Italian elections his party won only about 10% of the vote is the most serious challenge yet to the democratic legitimacy of the euro zone, said Paul DeGrauwe, professor of European political economy at the London School of Economics.